Putin: Cryptocurrencies are too volatile to be used in oil contracts

 Russian President Vladimir Putin has said that cryptocurrencies are too volatile to be used to settle oil contracts, but nonetheless deserve a place as a means of payment.

Russian President Vladimir Putin has said that cryptocurrencies are too volatile to be used to settle oil contracts, but nonetheless deserve a place as a means of payment.

The Russian president made the remarks in an interview with CNBC television, which was published on the Kremlin's website on Thursday. Putin was responding to a question if he expected oil contract prices to be valued in cryptocurrencies instead of dollars in the future.

Russia has been trying for years to reduce its dependence on the US dollar, which is widely used to settle oil contracts, but it has not succeeded in achieving this on a large scale, although some commodity companies have switched to dealing in euros.

“It is too early to talk about that at the moment because cryptocurrency can, of course, be a means of payment, but it is very volatile,” Putin said. To move money from place to place, yes, but I think it is still too early to use it for trade, especially energy trade.”

Russia legislated cryptocurrencies this year and banned their use in trading goods and services in the country, even though investing in cryptocurrencies is legal.